China Essence

There is nothing much one can do. Shareholders are at the mercy on this guy Zhao...

But has CEO Zhao undermined shareholder' trust before?
$12mil HK of his own money....

I will not come out with a single cent if I want to play out the shareholders....

(29-02-2012, 10:10 PM)xlandjy Wrote: There is nothing much one can do. Shareholders are at the mercy on this guy Zhao...

I am not vested.

If you are, I wish you good luck.

(05-03-2012, 06:00 PM)Curiousparty Wrote: I have complete faith in the CEO
Mark my word

Marked Trading to resume tomorrow. Interesting to see how it goes.

China Essence will be a phoenix rising from the ash. Just wait and see..

JV on modified starch on way and plantation planting of potato plus large scale expansion of Animal Feed ...

What can be expected from a counter that can not plan the repayment of its bond ? I won't touch it even with a 5 meters pole, as somebody says.

In its announcement on 20 Feb 2012, the Co. stated "Due to CNY holidays in China, local government took an unexpectedly long period of time to process the fund transfer ... this resulted the co. not being able to make due payment on 15 Feb..." Waah, Chinese government and banking system took month to process a little fund transfer... Shareholder should bring this up to China Central Bank...

Three days later on 23 Feb, another announcement stated "CEO Zhao gave a personal interest free loan of HK 12,000,000 to the Company." Why the need for the loan? According to CEO Zhao, it was the delay caused by the local govt becos of CNY....

Good luck to all shareholders...

I have a very simple rule which I live by when it comes to investing - When in doubt, avoid.

It would seem that China Essence was not alone in encountering delay in remitting money out of China.

The following announcement by Fung Choi Media Group (27 February 2012) also attributed delay in redeeming its bonds to the Lunar New Year holidays:

"...............................................................................................................................
Due to the extended Lunar New Year holidays in the People’s Republic of China, the Company has experienced a delay in obtaining the necessary approval from the relevant Guangzhou tax authority for the remittance of the Company’s onshore dividends for the payment of the Remaining Outstanding Bonds (as defined below). As such, the Company will not be able to proceed with the full redemption
Based on the Company’s understanding and communication with the relevant Guangzhou tax authority, it has requested for and Ind park Holdings Limited (“Bondholder”) has granted an extension of time for the Company to redeem the Remaining Outstanding Bonds, on the terms and conditions of supplemental deeds entered into with the Company on 27 February 2012.
........................................"

From AR2011 "Each spring, the farmers sow a new crop, which will be harvested in August. There is only one harvest each year in Northeast China."

Reminds me of Anchun International. Took just 1 bad drought to sink the earnings of the company. How reliable is the potato harvest each year in Northeast China?